South Asia: Imported ferrous scrap market witnesses mixed price trends
...
The South Asian ferrous scrap market showed mixed trends. Indian buyers remained quiet due to ongoing bid-offer disparities. In Pakistan, enquiries picked up slightly in the week before Eid. In Bangladesh, buying was moderate, with a few deals reported towards the weekend.
Overview
India: In India, demand for imported scrap remained relatively slow as steel demand stayed sluggish. Many steelmakers opted for cost-effective alternatives like sponge iron, adjusting their charge mix to reduce costs.
A steel mill official said, "Current offers for EU/Italy-origin NTP are at $425/t CFR Chennai, while our bid levels are at $415/t. Most offers from Australia are around $420-422/t for shredded scrap, and HMS 1 is at $410/t. We are quoting $415/t for shredded and $395/t for HMS (80:20). Suppliers are absorbing major freight charges, so no significant price hikes have been noted in our offers."
A representative from a major trading house said, "A couple of bulk cargoes were connected 5-10 days ago, but no major bulk arrivals have been reported for Chennai since then. The domestic finished steel market remains extremely slow, with stable price trends in recent days, which has kept scrap purchasing at a slower pace."
Pakistan: Indicative offers for shredded scrap from the UK/Europe were assessed at $422-423/t CFR Qasim. Pre-Eid restocking kept the enquiries active in the market.
A steel mill official said, "The SBP (State Bank of Pakistan) has reduced the monetary policy rate by 150 basis points to 20.50%. We are closely monitoring the upcoming budget to understand its impact on the steel market."
Bangladesh: In Bangladesh, buyers were sidelined and activities remained subdued considering rising freight costs and container unavailability. Indicative offers for shredded scrap from the UK/Europe were assessed at $422-425/t CFR Chattogram, while HMS (80:20) offers were heard at $400-405/t CFR.
A UAE-based exporter stated, "We recently paid $635/t for a 20-ft container from the UAE to Chattogram and have not faced any issues from the Middle East. Export deals are currently under negotiation, with tentative prices for HMS 1 and PNS mix from the UAE ranging between $415-420/t."
Turkiye: Turkish deepsea imported ferrous scrap prices increased slightly with HMS(80:20) standing at $384/t CFR and indicative tradable values for US-origin HMS (80:20) ranged from $382-$386/t CFR.
Market activity was limited, with sellers largely stepping back. As per market sources, some mills remained active with Baltic-origin HMS (80:20) at $380-$382/t CFR and US-origin material at $382-$385/t CFR. A European supplier indicated a workable value for EU-origin material at a minimum of $380/t CFR, despite the euro depreciating on the other hand, US suppliers targeted at least $385-386/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed increased by $2/t to $420/t CFR Nhava Sheva as compared to the last closing.
Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, slightly increased by $1/t as compared to the last closing.
Bangladesh: UK-origin shredded prices edged down by $3/t to $422/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $384/t CFR Turkiye, up by $1/t as compared to the last closing.
